Uzbekistan: Lukoil gets loan for Khauzak-Shady
Lukoil Overseas has agreed with a bank consortium to take a limited recourse loan of as much as $500 million for continued development of the Kandym-Khauzak-Shady-Kungrad project in Uzbekistan.
The funds are to be used to finance development of the Kandym group of fields and for a production increase in the Khauzak-Shady area. Lukoil Overseas said this is the first large-scale loan to a private company operating in the Uzbek fuel and energy industry.
Lukoil Overseas signed the Kandym-Khauzak-Shady-Kungrad PSA in June 2004, and it took effect in November 2004. The Khauzak-Shady group of gas fields went on production in 2007. Start-up of Kuvachi-Alat field in the Kandym group is set for 2014.
Lukoil Overseas, Uzbekistan’s largest foreign investor, estimates that 11.6 tcf of gas is recoverable. Expected production rate is 388 bcf/year.
Alan Petzet | Chief Editor Exploration
Alan Petzet is Chief Editor-Exploration of Oil & Gas Journal in Houston. He is editor of the Weekly E&D Newsletter, emailed to OGJ subscribers, and a regular contributor to the OGJ Online subscriber website.
Petzet joined OGJ in 1981 after 13 years in the Tulsa World business-oil department. He was named OGJ Exploration Editor in 1990. A native of Tulsa, he has a BA in journalism from the University of Tulsa.
